Zimbabwe going swimmingly for Caledonia, but platinum rights in South Africa go missing

Caledonia Mining  ended Friday down 10.5% or 1c ahead of the release of it annual results.

The company's flagship asset is Blanket, a producing gold mine Zimbabwe where it reported production doubled over 2010 with 35,836  ounces produced.

Turnover came to $55 million versus $22 million the year before.  Net profit after income taxes for 2011 was $12 million.

The company also said its the cash costs were significantly reduced over the year  to $581 an ounce, compared to $751 an ounce in 2010. In Q4 costs were ratcheted down further to $521 an ounce.

Caledonia  announced in February it has signed a deal with the Zimbabwe government to divest 51% of its Blanket Mine to indigenous Zimbabweans for $30 million. The purchase costs would be paid to Caledonia out of Blanket's future dividend streams.

Caledonia said it made payments in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government of Zimbabwe totalling $13,6 million during the year.

The company is  worth $42 million on the TSX,  and is trading flat for 2012.

At the beginning of March the counter spiked higher to 11.5c after   a new mineralized zone was identified at its Zambia copper exploration project called Nama.

Apart from Blanket and the Nama project in Zambia the Toronto-based company  holds  platinum assets  in South Africa, but Caledonia is writing down $3.8 million because "despite the timely application for the renewal of the prospecting rights, no rights have been issued."